How to Purchase an REO Property…
Buying an REO property is different from the typical real estate purchasing process. Whether the purchase will serve as your personal residence or as an investment property, you should be aware of the unique procedures and criteria involved in such a purchase before deciding on an REO property.
General Information
Our bank foreclosures sell, on average, in 90 days or less. They are priced competitively in the marketplace. It is not unusual to have more than one offer at the same time and you will always be notified of a multiple offer situation.
Prequalification
Before submitting an offer, most lenders require a commitment letter from a lender or proof of funds. Many sellers will not negotiate without this documentation. If you need information on how to prequalify, please contact us .
Earnest Money
$500 – $1,000: Homes under $100,000 (Some lenders have a $1,000 minimum requirement);
2-3% – Homes over $100,000.
Disclosure
The seller or 3rd party (lender that currently owns the property) never occupied the subject property. Therefore, no disclosure is provided. A buyer does have the right to request a home inspection but there is no obligation for the seller to make repairs (although this may be negotiated). There is always an addendum to the contract which further stipulates conditions for the purchase of the REO property on an ‘as is’ basis.
Contingencies
Although not a normal condition, a contingency offer may be negotiated if you have a contract to sell your current residence and details can be offered which confirm the probability of completing the sale. The buyer or agent can make the offer on this basis.
Are you ready to start the process? If you are interested in purchasing an REO property, Contact Us to discuss your options. You can also browse some of our Current Listings online.